Americas Core Credit Podcast: Purdue Chapter 11; Fraudulent Transfer Claims and Third-Party Claims

Each episode of Reorg’s weekly podcast series features a look back at highlights and top stories from the week in review and a preview of what’s to come in the week ahead, followed by a deep dive on issues and companies in the distressed and high-yield space. For this week’s deep dive, Reorg’s Karen Leung and David Zubkis discuss the $4.6 billion settlement with the Sackler family in the Purdue chapter 11 cases and explore the releases of fraudulent transfer claims and third-party claims against the Sacklers.

Purdue has been taking up a lot of headlines and with the opioid crisis coming to a head with a variety of litigation cases accelerating due to the pandemic, our Americas Core Credit analysts dive deep into the chapter 11. The plan is both innovative and controversial, and the Purdue chapter 11 was the first major bankruptcy driven by the opioid crisis. Thousands of related lawsuits have been tied to the company’s role in developing, making, marketing and branding oxycontin, the narcotic painkiller. What you can see in the plan is the parties in the case using the tools in the chapter 11 toolbox to address not bonds and loans, but trillions of dollars in claims related to a mass social crisis. Listen to the full episode below.